There are a few reasons Canadian companies can choose to grant a loan. However, corporations need to be aware that lending to non-residents can lead to a requirement for the Canadian company to pay tax. Clearly, this situation is far from ideal. In this article, we will look at the tax implications of Canadian corporate … Continue reading Canadian corporate loans to non-residents
I have previously discussed how the Foreign Accrual Property Income (FAPI) applies to Canadians who establish corporations in a different country. For my previous article, please visit What is the Foreign Accrual Property Income (FAPI) in Canada? . After reading the article, more shrewd readers may ask, “What if I create a corporation in a … Continue reading Foreign Accrual Property Income – Part 2
Are you a Canadian Taxpayer looking to invest in another country? Have you heard of the ‘Foreign Accrual Property Income (FAPI)? If you have not, do not invest before you read this article! Imagine, if you will, a scenario. There is a wealthy Canadian taxpayer in the highest personal tax bracket. He has contributed … Continue reading What is the Foreign Accrual Property Income (FAPI) in Canada?
Are you a nonresident of Canada? Do you know what the Section 217 Election means for you? Doing business in another country can be difficult, as you have to deal with two systems and two different sets of laws. In this article, I will explain more about this potentially confusing topic and provide you with … Continue reading Non resident withholding tax – What is a section 217?
Are you looking for information on international taxes and Canada? International companies and non-resident Canadians conducting business in Canada are subject to a wide array of different tax implications. Some of these implications include issues with permanent establishments, non-residential tax returns and withholding taxes.
You will need to set up an NR account number if you’ve never remitted non-resident income tax deductions. You can do this by contacting the CRA at 1-855-284-5946. The CRA can set it up over the phone and also tell you how to remit your deductions.
Français Do Canadians pay tax on an inheritance from abroad, overseas, our outside of Canada? This article will answer this question in detail, and provide a summary of inheritance tax in Canada. Estate of Deceased Person outside Canada When a person dies an estate, which is a type of trust, is automatically formed. The estate … Continue reading Tax on foreign inheritance Canada
Are you a non-resident of Canada, or are you planning on becoming a non-resident in the near future? If yes, then you need to learn about the tax returns and forms for non-residents; otherwise, you could end up with a nasty surprise from the taxman. Becoming A Non-resident Becoming a non-resident for tax purposes is … Continue reading Tax Returns and Forms for Non-Residents
Yes, the principal residence exemption will be adjusted based on the amount of time one is a non-resident. If an individual is a non-resident for the entire year, the individual will not be entitled to the principal residence exemption.
As Canadians, we are very active in the global economy. In fact, many Canadians have foreign investments in countries from the United States to China. This article explains the foreign property reporting requirements that Canadians have with the Canada Revenue Agency. Foreign Property Reporting to the CRA Individuals looking to grow their wealth will often … Continue reading Foreign Property Reporting for Canadians
Non-residents of Canada are required to pay tax on capital gains resulting from the sale of Canadian real estate. Failure to do so can result in huge penalties levied by the CRA. Sale of Canadian Real Estate by Non-residents of Canada Under Section 116 of the Income Tax Act, non residents who sell Canadian real … Continue reading Do non-residents of Canada pay capital gains tax?
Non Residents of Canada earning rental income from Canadian real estate have Canadian tax obligations. This article identifies the different forms and returns that can be or are mandatory to be filed with the CRA regarding the rental income earned. Background When non-residents receive rental income from real property in Canada, taxes on the income … Continue reading Non-Residents Earning Rental Income from Real Estate in Canada